NECESSITY,
FUNCTION, AND CONFORMITY KRS 304.2-110(1) authorizes the executive director to
promulgate administrative regulations necessary for or as an aid to the
effectuation of the Kentucky Insurance Code as defined in KRS 304.1-010. KRS
304.17A-096 authorizes an insurer that offers a health benefit plan to offer
one (1) or more basic health benefit plans in Kentucky. EO 2008-507, effective
June 16, 2008, established the Department of Insurance and the Commissioner of
Insurance as the head of the department. This administrative regulation
establishes the requirements of a basic health benefit plan.

(1)
Accompany or be a part of the application for coverage under a basic health
benefit plan;

(2)
Be included in a basic health benefit plan policy and certificate of coverage;

(3)
Meet the same requirements as the minimum standards for the readability and
intelligibility of insurance contracts as established in 806 KAR 14:121; and

(4)
List the state mandated health insurance benefit excluded in whole or in part
from coverage under the basic health benefit plan.

Section
3. State Mandated Health Insurance Benefits. A basic health benefit plan
differs from a health benefit plan by the insurer electing to exclude one (1)
or more of the following in whole or in part:

(1)
Coverage of therapeutic foods, formulas, supplements, and low-protein modified
food for the treatment of inborn errors of metabolism and genetic conditions as
required under KRS 304.17A-258(2);

(d)
Treatment of an injury that results from an act of domestic violence or a
medical condition as identified in 29 C.F.R. 2590.702(b)(2)(iii); and

(e)
Nondiscrimination due to genetic information as identified in 29 C.F.R. 2590.702(b)(1) and 2590.702(b)(2)(i)(B).

(3)
A basic health benefit plan shall be marketed, distributed, and issued by an
insurer in the same manner as a health benefit plan.

Section
5. Annual Reporting Requirements. An insurer offering a basic health benefit
plan shall report to the department annually by April 1, on the form
HIPMC-BHP-1, Basic Health Benefit Plan Annual Report, incorporated by reference
in 806 KAR 17:005, the following information relating to a basic health benefit
plan:

(1)
Total premium by product type and market segment;

(2)
Total enrollment by product type, market segment, and county; and

(3)
Total number of individuals not covered under health insurance for a period of
at least one (1) year prior to coverage under a basic health benefit plan. (32
Ky.R. 806; Am. 501; eff. 10-7-2005; 34 Ky.R. 1810; 2100; eff. 4-4-2008; 35
Ky.R. 634; eff. 12-5-2008.)